Can I change my IVA Company?

Change your IVA Company It is not possible to change your IVA Company once you have started the Arrangement. However there are various different options you can consider if you are unhappy.

  • Is it possible to change your IVA Company?
  • If you are unhappy can you just stop your IVA?
  • Starting a new IVA with a different Company
  • Should you consider other debt solutions?

Unhappy with your IVA Company? Give us a call (0800 077 6180) or complete the form below to speak to one of our experts

Is it possible to change to a different IVA Company?

Once you have started an IVA it is not possible for you to change the company managing it. Your Insolvency Practitioner (IP) has been legally appointed by your creditors to supervise the Arrangement.

If you are unhappy the first thing you should do is talk to your IVA Company. Explain the problems you are facing and ask whether changes can be made.

After this if you are still dissatisfied you can escalate with a written complaint directly to your IP. They are personally responsible for the Arrangement and have the power to make changes if these are reasonable.

After complaining to your IP you may feel your issues are still not being resolved. You can then escalate to the Insolvency Service using the Government’s Complaints Gateway.

If you are unhappy can you just stop your IVA?

If after trying to escalate your complaint you are still unhappy there are two options. One is to live with your frustration and see your IVA through. Alternatively you can stop the Arrangement.

An IVA can be stopped at any time by letting it fail. However before you decide to do this you must understand the implications. Most importantly your debts are likely to remain outstanding.

You also need to consider whether you might be forced to go bankrupt. In fact this is extremely unlikely. However it is a risk if a significant amount of your debt is owed to HMRC.

If you are thinking about allowing your Arrangement to fail you should make this clear to your IVA Company. Faced with this ultimatum they may be more inclined to make changes to help you.

Can you start a new IVA with a different Company?

After your old Arrangement has failed you may decide to resolve your debt problem by starting a new IVA. There is nothing to stop you doing this if you wish.

The best way is use a different IVA company that you feel more comfortable with. They will take a fresh look at your situation and can draft a new proposal that is better suited to you.

You should not be concerned that your creditors will not accept a second IVA proposal from you. In general they will as long as the new proposal is reasonable and the reason for any changes properly explained.

Starting a new IVA will mean starting your payments again from month one. All the payments you made previously will be lost.

Should you consider other Debt Solutions?

Before starting a new IVA with a different company you should take the time to consider whether this is really the best thing to do. It may be that it is not the most suitable solution for you.

You should review the alternative debt solutions available to you. One of these might prove a better way for you to resolve your financial difficulties.

Going bankrupt is often considered by people who are unhappy with their IVA. This is because any monthly payments that are required will only last for 3 years. However it is not always a suitable solution.

If you are unhappy with your IVA and you are not a home owner or you have no equity in your property one of the options you should consider is Bankruptcy.

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6 thoughts on “Can I change my IVA Company?

  1. Claire says:

    Hi I took an iva with a company and have been in it for approx 2 years however they have sold my iva to another company who are to be truthful making it harder for me, they do not support me at all except take my money

    1. Hi Claire. It can happen that an IVA company will sell their clients to another firm. This may be the case if the old Insolvency Practitioner is retiring or the company no longer wants to stay in the IVA market. I am sorry you feel the new company is not treating you so well. If you want to chat through your options please do not hesitate to give us a call (0800 077 6180).

  2. Brad says:

    How long can an IVA last? I took mine out on the understanding it would be 5 years now I am up to 7 years with a threat to add another year?

    1. Hi Brad,

      The standard length of a monthly payment IVA is normally 5-6 years. Generally it would be 5 years with the option to extend for another year if you are a home owner with equity in your property which you are unable to release.

      Having said that an IVA can be extended for other reasons. For example if you took a payment break you will have to make up the payments you missed at the end. Alternatively you may have earned more money during the arrangement without letting your IVA company know. You would then be arrears and again would have to make this up by extending the number of months you are obliged to pay.

  3. David says:

    Hi I’ve been involved with my iva for around a year, there communication with me is awful, I contacted them twice, once by email and the other by whats ap both with no reply. Where do I stand with trying a different iva company

    1. Hi David

      As discussed in the article above above it is not possible to change your IVA company. Have you tried calling them on their standard land line number? This might be the best way to get in contact with them….

      If you get to a point where you feel you really cannot carry on with them your only option is to fail your current IVA. You can then start another one with a different company or consider a different solution such as a debt management plan or bankrupty.

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